Qantas scraps carbon tax surcharge

Qantas will scrap one charge, but don’t expect to fly any cheaper. Source: AFP

QANTAS has removed a carbon tax-linked surcharge from its fares, but customers shouldn’t expect to find themselves paying less to fly.

The airline’s erased the surcharge ahead of the expected repeal of the carbon tax, which is expected to pass the senate soon. However, because intense market competition precluded Qantas from increasing fares, the removal of the surcharge won’t affect prices.

“Given the level of competition and the unique pressures in the domestic aviation market, we haven’t been able to recover the cost of the carbon tax through price increases, as we originally intended,” the airline said on Wednesday.

The carbon tax-linked surcharge amounted to up to $7 but wasn’t added to the cost of domestic fares, with the airline absorbing the any costs into its bottom line.

“Our all-inclusive fares have not risen, though we have kept a small carbon surcharge on domestic fares so that we can keep track internally of the cost of the tax,” Qantas said.

“This has now been removed, but there won’t be any change to the prices that customers pay.” Domestically, it the carbon tax cost Qantas $106 million in the 2012/13 financial year.

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